Research On The Relationship Between Specific Human Capital Of Different Chinese MNCS And Corporation Performance

Since Neoclassical Growth Theory emerged, the research on economic growth gradually becomes a relatively complete theory system, and now has resulted in Endogenous Growth Theory, which human capital was introduced as an endogenous variable. Besides, with the increasing number of Human Capital Theory research, human capital not only explained a country or a region economic sustainable growth, but also was recognized as an important positive influencing factor for corporations to gain high performances. But when we focus on Chinese multinational corporations (MNCs), it is easy to find out a phenomenon that different corporations with similar high-level human capital showed discrepant operation performances. Becker’s Human Capital Theory (1962) said that the human capital of firms could be separated into general human capital (GHC) and specific human capital (SHC). According to Becker’s theory, this thesis assumes that the phenomenon and the discrepant operation performances that the Chinese MNCs face I mentioned before, might be explained by the deficiency of SHC. The guiding significance of the existed researches is limited to Chinese MNCs. Depend on the related human capital researches in both domestic and abroad, this paper try to find out the definition and the nature of SHC, and use the empirical research to explore the relationship between Chinese MNCs performances and their SHCs. This thesis analyzed and used the executive director or the manager’s tenure as the substitution variable to explaining variable-SHC, used the Return on Assets (ROA), Return on Sales (ROS) and Return on Equity (ROE) as the substitution variable to explained variable-Corporation Performance, and controlled many influencing factors. The sample was chosen from the Chinese listed corporations which doing international business, the database contains 871 cross-section samples of the year 2013. After the descriptive statistics analysis, correlation analysis and the multiple regression analysis, the empirical analysis results showed that there is an inverted U-shaped relationship between SHC and corporation performance-with the increase of SHC, the performance first increases then decreases. At last, this thesis put forward suggestions to Chinese MNCs in the line with the empirical analysis results.